The State of Cybersecurity in Iraq: 2026 Outlook for Businesses

By:
Rami
Updated on:
December 29, 2025
The State of Cybersecurity in Iraq

Cybersecurity has become a critical priority for organizations across Iraq. As businesses modernize their operations and rely more heavily on digital systems, attackers are becoming more aggressive, more coordinated, and more sophisticated. Whether your company operates in Baghdad, Basra, Erbil, Najaf, or Mosul, the threat landscape in 2026 looks very different from just a few years ago.

From ransomware and credential theft to targeted phishing attacks and cloud breaches, Iraqi companies now face risks that can disrupt operations, damage reputations, and cause financial losses within hours. In this article, Osous Al Taqnia provides a clear perspective on the current cybersecurity landscape in Iraq and what organizations should prioritize to stay secure.

Cyber Threats Are Increasing Across Iraqi Sectors

Iraqi businesses across multiple industries are reporting higher levels of cyberattacks. Some sectors face particularly intense targeting:

  • Banking and finance: targeted for credential theft, ransomware, and BEC attacks
  • Oil and gas: targeted for industrial sabotage and espionage
  • Telecommunications: targeted for data breaches and infrastructure compromise
  • Healthcare providers: targeted for patient records and downtime extortion
  • Government agencies: targeted for data theft and political disruption
  • Logistics and transportation: targeted for supply chain interruption

These sectors handle sensitive information and provide essential services, making them attractive targets for cybercriminals.

A Financial Institution in Baghdad Faces a Coordinated Attack

In late 2025, a mid-sized financial institution in Baghdad experienced a sophisticated intrusion attempt.

What happened

  • Attackers used a phishing email disguised as a Central Bank update
  • Several employees clicked the link, exposing their credentials
  • Attackers then launched simultaneous login attempts from multiple foreign IPs
  • They attempted to bypass MFA and access the financial system dashboard

What Osous Al Taqnia did

Our SOC team intervened immediately using real-time monitoring:

  1. Flagged suspicious login attempts
  2. Blocked malicious IPs
  3. Forced password resets for affected accounts
  4. Conducted an internal compromise assessment
  5. Trained the finance team on identifying similar threats

Outcome

  • No financial or customer data was compromised
  • The attack was contained within minutes
  • Policies were updated to prevent similar incidents

The frequency of these coordinated attacks continues to rise.

Key Cybersecurity Trends Shaping Iraq in 2026

1. Ransomware Attacks Remain the Biggest Threat

Ransomware attacks in Iraq have increased significantly for three years in a row. Attackers encrypt data, disrupt systems, and demand payment to restore access.

Why it matters

  • Downtime can halt operations entirely
  • Critical files can be permanently lost
  • Attackers increasingly target backups
  • Recovery is expensive without proper preparation

Sectors like oil and gas, banking, education, and logistics face the highest risk.

2. Phishing and Social Engineering Are Becoming More Localized

Attackers now craft messages in Arabic and Kurdish, making them more effective.

Common phishing tactics include:

  • Fake banking notifications
  • Microsoft 365 login pages
  • HR or payroll updates
  • Shipment and invoice emails
  • Job offer scams for employees

Companies must train staff regularly to recognize these attacks.

3. Cloud Misconfiguration Is Emerging as a Major Vulnerability

As more Iraqi businesses adopt Microsoft 365 and Azure, many fail to secure:

  • Sharing permissions
  • Guest access
  • MFA enforcement
  • Mail forwarding rules
  • Conditional access policies

The lack of cloud governance is becoming a top cause of data leaks.

4. OT and IT Convergence Creates New Security Risks

Oil fields, factories, and logistics hubs rely on a combination of IT and operational technology (OT). These systems, once isolated, are now connected, increasing cyber risk.

Threats include:

  • Unauthorized access to industrial systems
  • Malware affecting production environments
  • Remote compromise of IoT devices

OT security will become a higher priority in 2026.

5. Insider Threats Are Rising

Not all cyber risks come from external attackers. Insiders, both intentional and accidental, can cause major data leaks.

Common insider incidents in Iraq include:

  • Copying files to USB drives
  • Uploading confidential data to personal cloud accounts
  • Misaddressed emails with sensitive attachments
  • Unauthorized access by departing employees

DLP and IAM controls are essential to mitigate these risks.

The Biggest Cybersecurity Challenges Iraqi Companies Face

Limited internal cybersecurity expertise

Many teams lack dedicated SOC analysts or security engineers.

Slow adoption of modern security frameworks

Zero Trust, segmentation, and EDR are still new to many organizations.

Outdated infrastructure

Legacy systems create vulnerabilities that attackers exploit.

Weak monitoring

Without 24/7 SOC visibility, threats often go undetected.

Inconsistent backup practices

Incomplete or untested backups allow ransomware to cause irreversible damage.

How Osous Al Taqnia Helps Iraqi Organizations Improve Cybersecurity

Osous Al Taqnia provides a full suite of cybersecurity services tailored to Iraq’s business environment.

Next-Generation Firewall Deployment

We deploy and manage firewalls that detect attacks, block intrusions, and secure network traffic.

SIEM and SOC Monitoring

Our 24/7 SOC team monitors your environment for suspicious activity, investigates alerts, and provides rapid response.

Endpoint Protection

Advanced EDR solutions protect laptops, servers, and mobile devices from malware and exploits.

Identity and Access Management

We enforce MFA, secure authentication, and least-privilege access for all user accounts.

Cloud and Microsoft 365 Security

We harden configurations, secure data, and monitor cloud environments.

Backup and Disaster Recovery

We design modern backup systems that are ransomware-resistant.

Employee Training and Awareness

We provide workshops and phishing simulations designed specifically for Iraqi teams.

Strengthen Your Cybersecurity in 2026

Cyber threats in Iraq are not slowing down. The organizations that invest in proactive protection will stay ahead, reduce downtime, and build trust with customers. Request a cybersecurity assessment

Osous Al Taqnia is ready to help your business navigate Iraq’s growing cybersecurity challenges with confidence.

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IRAQ

Villa S 11/5, Atconz, Erbil
62nd St, Baghdad

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